But you know, think about how many times you read that “The markets were down a fraction of a percent today because XYZ” where XYZ can be “worries of Greek contagion”, “possibility of Asian bird flu spreading”, “H1N1 concerns”, “(random, unimportant, meaningless, manipulated economic report like) the ISM was weak” or “IBM’s earnings missed by a penny and deflated tech which took the markets down”, or…well, you get the idea.

60% premium? That’s what Google paid over what Motorola was trading at on Friday. Motorola’s been killed this year, but has a good balance sheet and is obviously a historic company that wasn’t going to go out cheaply. Google had to pay up and they did and it looks like the markets saying that “it’s winners all around”.

But all that said, let’s also look past these issues. Unless you truly think that both the U.S. and E.U. economies and therefore societies are about to implode upon themselves and that we are headed into a Great Depression or something worse, then we’re likely already closer to pricing all off these problems into the markets already.

Q: Many pundits like J. Cramer and Dan Niles saying to avoid tech stocks like Alcatel, Micron, Sirius and Level 3 till later in the year. Your thoughts? A: I can only tell you that I would prefer that EVERYBODY else you read and listen to tells you to AVOID every stock I am long and to BUY every stock I am short. Contrarianism is a way of life. Ha (sort of ha).

Do you expect to be initiating a lot of new positions in the next few weeks or will you mostly be adding to existing positions (lowering basis), in other words, what do you think you will be pulling the trigger on?

In other words, folks, that is some crazy kind of action. And frankly, those kind of intraday dislocations are not bullish for the very near term, though how this market trades for the near term with this kind of volatility will make everybody look like a genius or an idiot depending on what time the markets close each day.

Remember how great you felt two weeks ago as the DJIA cross 12600 and we were levered up and aggressively long? You’d just nailed the Google and Sandisk trades and the portfolio was at all time highs. Apple, Cypress and Microsoft had just reported beautiful quarters and the market rewarded their stocks.

Cross-posted with my independent site, TradingWithCody.com. Sailin’ down the river in an old canoe, a bunch of bugs and an old tennis shoe. Out of the river all ugly and green, came the biggest old alligator that I’ve ever seen! Teeth big and pointy and his eyes were buggin’ out, contracted the union, put the beggars […]

Each Wednesday at 2 p.m. EST, I meet my TradingWithCody.com subscribers in a chat room on the site to answer any question they want to ask me. Last week we hit on all kinds of topics, from what chip companies benefit the most from the iPad to QE2 and the potential for QE3. We’ll be back in there chatting away today at 2 p.m., so if you’re interested, sign up for a free trial and check it out today.

About The Cody Word

Cody Willard writes the Revolution Investing investment newsletter for MarketWatch and posts the trades from his personal account at TradingWithCody.com He is the founder of WallStreetAll-Stars.com and the principal of CL Willard Capital. Cody serves as an adjunct professor at Seton Hall University and is on the University of New Mexico Alumni Board. He was an anchor on the Fox Business Network, where he was the co-host of the long-time #1-rated show on the network, Fox Business Happy Hour. Cody, a former hedge fund manager, and his stock picks and economic outlooks have been featured on NBC’s The Tonight Show with Jay Leno, ABC’s 20/20, CBS Evening News, CNBC’s SquawkBox, Jon Stewart’s The Daily Show, as well as in the Financial Times, Wall Street Journal, New York Times, and many other outlets.